You have the following information for Sunland Company. Sunland Company uses the periodic method of accounting for its inventory transactions. Sunland Company only carries one brand and size of diamondsall are identical. Each batch of diamonds purchased is carefully coded and marked with its purchase cost.

You have the following information for Sunland Company. Sunland Company uses the periodic method of accounting for its inventory transactions. Sunland Company only carries one brand and size of diamonds-all are identical. Each batch of diamonds purchased is carefully coded and marked with its purchase cost. March 1 March 3 March 5 Sold 178 diamonds for $598 each. Beginning inventory 141 diamonds at a cost of $297 per diamond. Purchased 185 diamonds at a cost of $384 each. of $384 March 10 Purchased 319 diamonds at a cost of $385 each. March 2o Purchass diamonds for March 25 Sold 405 diamonds for $638 each. Assume that Sunland Company uses the specific identification cost flow method. uses the sp (1) Demonstrate how Sunland Company could maximize its gross profit for the month by specifically selecting which diamonds to sell on March 5 and March 25. To maximize gross profit, Sunland Company should sell the diamonds with the Sunland cost. (2) Demonstrate how Sunland Company could minimize its gross profit for the month by selecting which diamonds to sell on March 5 and March 25. To minimize gross profit, Sunland Company should sell the diamonds with the minimize 9 cost. o minimize Assume that Sunland Company uses the FIFO cost flow assumption. Calculate cost of goods sold. How much gross profit would the company report under this cost flow assumption? Cost of goods sold Gross profit